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Drawback Program - Claiming a drawback for exported motor vehicles

In this context, a drawback is a refund of the customs duties paid on imported goods that you eventually export. Under specific circumstances, you can temporarily use a motor vehicle in Canada before you export it without affecting your eligibility for a drawback.

Qualifying for a drawback

If you are a Canadian resident, you have to export the vehicle no later than 30 days after purchasing it. If you are a non-resident, you have 12 months to export it.

Claiming a drawback

If you purchase a vehicle you intend to export, you cannot directly claim a drawback. However, you can arrange with the importer or dealer (e.g. of an imported vehicle) or the manufacturer (e.g. of a Canadian-manufactured vehicle) to file a drawback claim and pass the savings to you. If the importer or dealer chooses to do so, he or she could reduce the purchase price by the drawback amount.

If the dealer, importer, or manufacturer sells a vehicle for export, he or she has to complete Form K32, Drawback Claim , and send it to the local Canada Border Services Agency (CBSA) office. He or she also has to support the claim with information from you, the purchaser, confirming that you exported the vehicle.

When more than one person is eligible to file a drawback claim, waivers must be submitted by the other eligible claimants before the CBSA can process your claim.

Time limits

In all cases, the claim has to be filed no later than four years after the date of release of the imported vehicle by the CBSA.

Payment and compliance

The CBSA often fully or partially refunds properly prepared and supported claims shortly after you file them. When the Agency partially refunds claims, it pays the balance owing after verifying the claim. When the Agency does not fully refund a claim within 90 days of you filing it, it will pay interest on the outstanding balance.

More information

For more information on the Drawback Program or for help preparing your claim, contact your local CBSA office.